Around 3 days after Fighting is Magic received its Cease & Desist order, some guy on Ponychan figured that he wanted to make his own open source pony fighting game, featuring a cast made up entirely of...original characters (ew). He got together some people together, and for most of this time they've been working on the engine and character creator. The project seems to still be active, despite the fact that they keep forgetting to upload stuff to their GitHub repo, so there's yet some hope that this project may yet live to see the light of day.
...For some reason I keep assuming that APFG stands for Another Pony Fighting Game, which, in my opinion, would make for a much better name.